The word virtual conjures up the vision of something highly technical. Virtual, as we often use the term, relates to the digital world — usually pertaining to some form of simulation. Virtual reality, virtual world, virtual life; these are all terms you’ll have heard before.
So when we say “virtual office”, do we mean some kind of virtual-reality digital office?
No, we don’t.
A virtual office address is not an office address that exists in the digital world. It’s a very real and tangible asset that you can apply to your business. But this then begs the question, if a virtual office address isn’t digital, what is it?
What Is a Virtual Office Address?
Virtual has another meaning. One perhaps lost to the technological age in which we live.
Virtual can mean both “in effect” or “implied.” Consider this example: “it’s virtually an office.”
A virtual office or business address is an office in-principle. It’s not actually an office you work from, but it is, in effect, an office for the purposes of business formation and operation. In essence, it is an address for your business that you can use on a variety of official documentation, forms and registration services and where you can receive mail and other correspondence.
When you register a business, you must provide a registered business address for your company. You’ll also need to provide an address when signing up to other services, like phone plans, banking and insurance. When you set up marketing channels and business platforms like a website, you’ll also need an address as a form of contact.
A virtual office address is a stand-in for the registered office address. You can use virtual registered office address as your official address for business items, but it isn’t your physical address. It’s an office address without owning an office.
Do You Need a Virtual Office Address?
A virtual office address is a segmented part of a real physical address. Its most similar counterpart is a PO box. It’s an actual location and an address you can technically visit, but it’s not a real office that you work at.
If you work from home or do not want visitors to your physical location, registering a virtual office address is the best solution for your business. It is also a great solution if you have a UK business but live and work in another country.
Companies like Mint Formations offer virtual registered office address. What we do is lease you an address registered under our prestigious London property for a low annual fee. The lease allows you to use the address for your business processes as you would if you owned or rented the actual office space.
The big difference is that there is no office you can access, just an address that you can use for documentation. But how can physical properties have multiple addresses? Imagine you rent office space in an office complex. Your address is the same as the other businesses who all rent space in that complex alongside you, but you all have individual segments of that address that you can use for your business.
Why Use a Virtual Office Address?
There are two main reasons why people use virtual business addresses — reasons why this service has only increased in popularity over the past few years.
- The first is cost. If you need a business address, office rental is expensive. Renting office space in London is going to set you back thousands a year. By contrast, a virtual office address from Mint Formations starts at £35 per year. The substantial cost savings are a massive draw when it comes to registered office addresses when compared to traditional office space. If you want an address for your business, but don’t need office space, the high cost of property rental is prohibitive, and a registered address offers a budget-friendly solution.
- When you register your business address with Companies House, you do so publicly. Anyone can see the address associated with your business. You’ll also need to use your business address for other public listings, like directories and Google accounts. If you don’t have an office or official business premises, this will mean you’re registering your private residence under your business name. Many business owners don’t want to do this and would rather avoid having their actual address in the public domain. A virtual office address solves this problem, as your personal address is not registered to the business.
What Is the Difference Between a Virtual Office Address and a Registered Office Address?
We’d forgive you for thinking that a virtual office address and a registered office address are the same thing, but there is one key and essential difference between the two.
A registered office address only allows for registration with official bodies like Companies House for the purpose of business formation. It’s a valuable service, but it does not support mailing and correspondence outside business setup, which means you cannot use it for additional third-party activities like listing your address on Facebook or adding it to your website.
To put it simply:
- A registered address is for starting a business.
- A virtual address is for evolving a business.
If you’re only looking to get yourself set up with Companies House, and have no need to give out your address to other services, then a registered office address is enough. It removes the “virtual” because it isn’t virtually an office; it’s just a tool for business registration.
It is ideal for dormant companies or contractors/consultants who work within their network and aren’t looking to promote themselves externally.
If, however, you are looking to promote yourself externally, as most businesses are, then a virtual office address promises more flexibility. You can use the service to get yourself set up on a variety of platforms.
What Happens to My Mail directed to Virtual Office Address?
With a virtual office address, you’ll have complete mail forwarding services. Any correspondence delivered to your business address is sent on to your private address without the senders ever knowing your personal details. If you opt for the registered address instead, then there is no mail forwarding. Your Companies House and HMRC documents will be sent on to you, but no other forms of correspondence will.
Interested in getting started with a virtual office address? Our Companies House registration services include packages with a virtual registered office address and much more! Get your business formation off to the right start with Mint Formations.